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    Textile: Overall Budget Allocation For Textiles Reduced by 30.41 Per Cent As It Is Rs

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    Kinjal Khorasia
    The budget allocation for the textile industry was reduced by 30.41% compared to the previous year. While some schemes saw increases in funding, such as the Amended Technology Upgradation Fund Scheme which was allocated Rs. 700 crore, an increase of 12.4%, overall the industry was disappointed as there is over Rs. 10,000 crore in pending subsidies. Reductions in customs duties and increases to support programs were made, but industry leaders still expressed concerns about issues like pending ROSL dues and difficulties obtaining financing. The budget aimed to boost the overall economy as well as socioeconomic conditions through initiatives like the National Research Foundation.

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    Textile: Overall Budget Allocation For Textiles Reduced by 30.41 Per Cent As It Is Rs

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    Kinjal Khorasia
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    The budget allocation for the textile industry was reduced by 30.41% compared to the previous year. While some schemes saw increases in funding, such as the Amended Technology Upgradation Fund Scheme which was allocated Rs. 700 crore, an increase of 12.4%, overall the industry was disappointed as there is over Rs. 10,000 crore in pending subsidies. Reductions in customs duties and increases to support programs were made, but industry leaders still expressed concerns about issues like pending ROSL dues and difficulties obtaining financing. The budget aimed to boost the overall economy as well as socioeconomic conditions through initiatives like the National Research Foundation.

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    The budget allocation for the textile industry was reduced by 30.41% compared to the previous year. While some schemes saw increases in funding, such as the Amended Technology Upgradation Fund Scheme which was allocated Rs. 700 crore, an increase of 12.4%, overall the industry was disappointed as there is over Rs. 10,000 crore in pending subsidies. Reductions in customs duties and increases to support programs were made, but industry leaders still expressed concerns about issues like pending ROSL dues and difficulties obtaining financing. The budget aimed to boost the overall economy as well as socioeconomic conditions through initiatives like the National Research Foundation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views3 pages

    Textile: Overall Budget Allocation For Textiles Reduced by 30.41 Per Cent As It Is Rs

    Uploaded by

    Kinjal Khorasia
    The budget allocation for the textile industry was reduced by 30.41% compared to the previous year. While some schemes saw increases in funding, such as the Amended Technology Upgradation Fund Scheme which was allocated Rs. 700 crore, an increase of 12.4%, overall the industry was disappointed as there is over Rs. 10,000 crore in pending subsidies. Reductions in customs duties and increases to support programs were made, but industry leaders still expressed concerns about issues like pending ROSL dues and difficulties obtaining financing. The budget aimed to boost the overall economy as well as socioeconomic conditions through initiatives like the National Research Foundation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    India’s Finance Minister Nirmala Sitharaman has presented Union Budget 2019.

    Though trade bodies have overall welcomed the budget, the textile
    industry, especially apparel manufacturers, are not happy with the budget as there is
    nothing special for them. Given below are the major points of the budget, which
    have an impact on Indian textile and fashion industry.

    Textile: Overall budget allocation for textiles reduced by 30.41 per cent as it is Rs.
    4,831.48 crore for 2019-2020 while for 2018-19 the same was 6,943.26 crore. This is
    mainly owing to the discontinuation of ROSL scheme from 7 March 2019. The new
    scheme called Rebate of State and Central Taxes and Levies (RoSCTL) which was
    announced simultaneously will be issued through free transferable scrips.

    Rs. 700 crore (increased 12.4 per cent compared to the last budget) has been
    allocated for Amended Technology Upgradation Fund Scheme. However, the industry
    is not happy as the total pending TUF subsidy under various TUF schemes is
    amounting to around Rs. 10,000 crore.

    There is a reduction in customs duty from 5 per cent to 2.5 per cent on imports of raw
    material under chapters 5101 & 5105 (wool fibre and wool tops). In terms of
    percentage change, the maximum change in grant is for Integrated Wool
    Development Program which has increased by about 447 per cent to Rs. 29 crore. In
    terms of value, the maximum grant is for Procurement of Cotton by Cotton
    Corporation of India (CCI) under Price Support Scheme which is 118 per cent higher
    than the last year to stand at Rs. 2,017.57 crore. It also has maximum share of 42 per
    cent in overall grant for textiles.

    Multiple labour laws will be streamlined into a set of four labour codes. Also,
    Government will bring about labour reforms, to cut down on litigations.

    The budget also says that the One Nation One Grid power sector tariff and structural
    reforms will support the textile industry.

    Then the annual turnover limit has been raised from Rs. 250 crore to Rs. 400 crore
    for availing a lower corporate tax rate of 25 per cent.

    To promote cashless transactions, the businesses with an annual turnover of over


    Rs. 50 crore can offer low-cost digital modes of payments and no charges or
    Merchant Discount Rate (MDR) will be imposed on them or their customers. Two per
    cent tax deducted at source (TDS) will be levied on cash withdrawals exceeding Rs. 1
    crore in a year from a bank account to discourage the practice of making business
    payments in cash.
    MSME: Under the interest subvention scheme, Rs. 350 crore allocation is for 2 per
    cent interest subvention to all GST registered MSMEs in the current year on all fresh
    and incremental loans. There is a plan to open a payment portal for MSMEs.
    Investment in MSMEs will receive a big boost through the portal if the delays in
    payments to SMEs and MSMEs are eliminated.

    Startups: The startups and investors who file requisite declarations will not be
    subjected to any kind of scrutiny in respect of valuation of share premium. A
    mechanism of e-verification will be put in place and with this, the funds raised by
    startups will not require any tax scrutiny.

    The special arrangements will be made by Central Board of Direct Taxes (CBDT) for
    pending reviews and cases related to startups.

    Besides, there will be an exclusive TV channel for startups under Doordarshan


    bouquet to provide a platform for startups to disseminate information in the industry.

    Retail: Local sourcing norms for single-brand retail to be eased. Small retailers with
    an annual turnover of less than Rs. 1.5 crore will get pension benefit under the
    Pradhaan Mantri Man Dhan Yojna.

    Industry Reaction

    “The Union Budget 2019-20 has laid ambitious targets to address various important
    issues relating to connectivity, power, skill development, etc. We hail 10-point vision
    for economic growth. I appreciate the substantial progress made on infrastructure
    front and initiatives taken on ease of doing business. Regarding TUF, I hope that
    once the Ministry of Textiles conducts joint inspection and makes the claims,
    adequate funds would be provided to enable the industry to mitigate the financial
    stress currently being faced,” P. Nataraj, Chairman, SIMA

    “We welcome the procedural simplifications proposed – like interchangeability of PAN


    and Aadhaar, simplified single monthly return, fully automated GST refund module
    and the electronic invoice system. The industry hopes to witness a reduction in the
    compliance burden following these measures. The industry today is faced with
    severe working capital shortage, due to long pending ROSL dues, difficulties in
    getting bank credits and GST refund blockages. The industry is also waiting for the
    ROSCTL scheme to be operationalised. We are hoping that the scheme gets enough
    funding for a smooth roll out and faster clearance of all past dues,” HKL Magu,
    Chairman, AEPC
    This is a holistic budget aiming to not only boost the overall economy but also uplift
    the socio-economic conditions of the people of the country. Formation of National
    Research Foundation is a positive and welcome step and this would lead to more
    constructive and focussed R&D in textiles,” Sanjay Jain, Chairman, CITI

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